Olenox Industries (NASDAQ: OLOX) has completed its acquisition of CS Digital Ventures LLC, launching an energy-led digital infrastructure platform designed to convert low-cost natural gas into compute at the point of generation. The transaction, which includes $30 million in upfront consideration, positions the combined entity to develop off-grid, gas-powered data centers with all-in power costs below $0.02 per kWh to support AI and other high-performance compute workloads.
The upfront consideration consists of $14 million in Series D Preferred Stock and a $16 million unsecured promissory note, along with warrants to acquire 1.5 million shares of Olenox common stock. Additionally, there is potential for up to $20 million in milestone-based preferred stock consideration. The acquisition pairs Olenox’s upstream natural gas position, midstream capabilities, and proprietary processing technology with CS Digital’s expertise in operating institutional-scale, energy-intensive data centers.
CS Digital brings approximately 35 MW of installed operating power capacity, projected 2025 revenue of $20.6 million, and projected 2025 EBITDA of $6.2 million. The combined platform targets the development of off-grid data centers that bypass traditional grid infrastructure, directly utilizing natural gas to generate electricity on-site. This approach aims to significantly reduce energy costs and provide a reliable power source for the growing demands of AI and high-performance computing.
The move comes as hyperscale data center operators face increasing pressure to secure affordable and reliable power. By integrating energy production with data center operations, Olenox seeks to offer a vertically integrated solution that could reshape the economics of large-scale computing. The company’s ability to keep all-in power costs below $0.02 per kWh—far below the national average—could be a competitive advantage as demand for compute capacity surges.
For industry observers, the acquisition signals a trend toward colocation of energy and compute resources. This strategy not only reduces transmission losses and grid dependency but also aligns with the growing need for sustainable and cost-effective power solutions. The off-grid model could also mitigate regulatory and infrastructure bottlenecks that often delay data center developments.
Olenox Industries, a vertically integrated energy company operating across oil and gas, energy services, and energy technologies, is focused on acquiring, optimizing, and scaling energy-related infrastructure and operating assets across key U.S. markets. The company’s newsroom provides the latest updates at https://ibn.fm/OLOX.
The full press release detailing the acquisition is available at https://ibn.fm/OcULR. This development underscores the growing intersection of energy and technology sectors, as companies seek innovative ways to power the next generation of computing infrastructure.
